Iranian July oil production increases 28% year on year (OPEC)
Iran produced 2.485 million barrels per day (bpd) of crude oil in July, registering a 28% increase from the same month in 2020, according to OPEC’s latest monthly report released on August 12.
Based on secondary sources, Iran had produced 1.936 million barrels per day of crude oil as of July 2020.
The Islamic Republic’s average crude production for the second quarter of 2021 was 2.443 million bpd, indicating an increase of 224,000 bpd from the figure for the first quarter of the year, according to the report.
The report puts the average Iranian crude production for 2019 at 2.356 million bpd, while the average production in 2020 has fallen to 1.988 million bpd.
These statistics show that despite the reimposition of US sanctions, Iran’s oil production has declined; gradually, the country was able to compensate for part of the drop in production.
The country’s heavy crude oil price also rose $ 1.3 in July, registering a 1.8% increase from the previous month, according to the OPEC report.
Iran sold its heavy crude oil at $ 72.98 per barrel in the mentioned month, up from $ 71.68 per barrel in June.
The country’s average heavy crude price was $ 65.01 from the start of 2021 until the report’s release date, compared to $ 38.54 for the same period a year earlier.
In addition to the devastating effects of the coronavirus pandemic on the global oil industry that led to the drastic drop in oil prices, Iran’s oil industry has also come under pressure from US efforts to isolate the country by reimposing sanctions.
According to IRNA, studies show that oil’s share of Iran’s economic growth increased in the previous Iranian calendar year 1399 (ended March 20); the figure would have been – 7.4% in the Iranian calendar year 1398 (ended March 19, 2020), in the winter of 1999 it reached + 4.5%.
Iran has increased its oil production in recent months following the recovery of global markets from the negative effects of the coronavirus pandemic.
Earlier in February, Fitch Solutions Incorporation, a subsidiary of Fitch Ratings, which is one of the three largest credit rating agencies in the United States, forecast Iranian oil exports to grow 6.8% in 2021 if the United States was reverting to the 2015 nuclear deal.
In one of his latest reports titled “Iran Oil and Gas Report,” Fitch also saw the Islamic Republic’s crude oil exports double in 2022 compared to 2020.
“The outlook for the Iranian oil sector has improved dramatically after Joe Biden’s victory in the US presidential election on November 3, 2020. President Biden has indicated he will seek to reintegrate the United States into the Iran nuclear deal, paving the way for a cancellation of secondary sanctions and a recovery of about 2.0 million barrels per day of oil production, ”the report said.
Source: Tehran Times